Rumour of US Inverter Import Curbs Cost Sungrow 45bn Yuan in One Session

A rumour that the United States could restrict inverter imports knocked Sungrow Power shares close to their daily limit on July 1 and erased 45 billion yuan of market value in a single session. The slide continued through the month, and roughly 120 billion yuan of capitalisation evaporated in under a month between late June and July 20.

The stock closed at 159 yuan per share on June 30, then fell to a recent low of 99.77 yuan on July 20.

Sungrow convened an emergency investor call on July 1, with chairman Cao Renxian taking part personally and stating that the company's exported products meet local standards. According to an investor account posted on social media, more than 900 investors joined the call, and the company said its American orders through 2027 were already locked in.

The company has quantified its exposure to that market. Sungrow said business in the United States has accounted for roughly 15% to 20% of total revenue in recent years.

On the evening of July 21, Sungrow announced that Cao Renxian had proposed a share buyback funded from own or borrowed funds, totalling no less than 500 million yuan and no more than 1 billion yuan, to be used for equity incentives or an employee shareholding plan. The stock rose 13.17% across July 22 and July 23, adding about 28.4 billion yuan of market capitalisation.

This is not the company's first repurchase programme. Wind data show Sungrow carried out several consecutive buybacks before May 2025, for a cumulative amount of about 2.3 billion yuan.

Earnings had already been deteriorating before the July selloff. First-quarter revenue came in at 15.561 billion yuan, down 18.26% year on year, while net profit attributable to the parent fell 40.12% to 2.291 billion yuan. The prior fourth quarter showed the same pattern at larger scale: revenue of 22.782 billion yuan, down 18.37%, and attributable net profit of 1.58 billion yuan, down 54.02%.

Storage is now the heavier half of the business. Energy storage system revenue accounted for more than 40% of Sungrow's total revenue in 2025. Overseas revenue rose by about 17.7 billion yuan against 2024, while total revenue grew by only about 11.3 billion yuan, meaning foreign sales expanded faster than the group as a whole.

The company has been pushing into adjacent equipment. On July 9, Sungrow launched the EnerNeo solid-state transformer and signed procurement agreements the same day with Dongyangguang and Zhonglian Data covering more than 130 MW of capacity.